Beginning January 1, 2026, the Power Cost Adjustment (PCA) charge on member bills will increase by 7.7%.
The increase will be reflected in the Power Cost Adjustment (PCA) line on the bill and will add about $15.75 to the average home using 1,200 kWh per month. We know any rise in costs is difficult, and we’re committed to being transparent about why this is happening and what we are doing to help.
What is the Power Cost Adjustment (PCA)?
The PCA is a separate line on your bill that reflects the actual cost we pay to purchase electricity. Because power market prices fluctuate, the PCA ensures those costs are passed through dollar-for-dollar, with no markup, to our member-owners.
The chart below shows years where the PCA has increased because power costs were higher than expected and years where the PCA decreased because power costs were lower than expected. Despite the fluctuations, power costs have been trending higher over the last decade.
Why are power costs increasing?
Rising wholesale power costs are the reason for the PCA increase. CVEC purchases power from multiple energy suppliers, which connect to your home through transmission highways managed by our regional grid operator, PJM. This approach helps protect you from price volatility. However, energy demand is growing across our region while there has been little to no new generation added. This imbalance is pushing transmission and capacity costs higher. At the same time, some of our older, lower-priced energy contracts are expiring, and replacement power is much more expensive in today’s market.
Who is PJM?
PJM is a regional power grid operator that balances supply and demand in real-time, coordinates transmission lines, and ensures the reliability of the electric system we all depend on. Being part of PJM’s network has historically kept your rates competitive and service reliable. However, this interconnection means regional market changes affect what we all pay. PJM’s “capacity” charges—what we pay to guarantee power during peak times—soared by up to 1,500% in our local PJM region last year.
What your cooperative is doing
As a not-for-profit, member-owned cooperative, we are working hard to reduce the impact of these higher market prices. We are:
- Adding interconnected solar generation to help avoid higher transmission costs. Significant progress has been made on an 8MW solar array in Albemarle County. This new array will bring CVEC's total solar interconnection to 23MW once completed.
- Installing batteries that will store energy when costs are lower, like overnight or during sunny periods, and discharge that power when demand and prices are higher. This strategy allows us to better manage our energy use, keep costs stable, and enhance reliability during peak times.
- Developing voluntary load management programs to help control peak demand. This helps reduce the amount of power that CVEC has to buy during the most expensive hours of the day.
- Advocating for fair and affordable pricing on behalf of our members at the state and regional level.
These initiatives take time to implement, but they are important steps toward long-term savings and greater reliability.
We understand that higher costs create challenges, and we remain focused on delivering safe, reliable, and affordable power to our communities. We also want to make sure our members understand how CVEC purchases power and the steps you can take to help offset the increases. More information about the increase, as well as tips to help monitor and reduce energy consumption will be sent by mail and/or email, and in the next newsletter.
Members may also visit the "Understanding Power Costs" or "Save Energy & Money" pages at www.mycvec.com for more information.
If members have questions or would like help managing energy use, contact Member Services at 800-367-2832 or by email at ms@mycvec.com. Our team is here to assist.
We thank our members for being part of our cooperative family.